Why are there so few sites selling repossessed cars online?
Despite the fact that there are so many products and services being sold online nowadays, places available to buy repossessed cars on the internet are scarce. This is mainly because it is easier to sell these vehicles in one location via an auction. Cars can be sold in a matter of minutes and payments can be exchanged immediately. There is no hassle of transporting cars to customers that selling via a website might have. There are repossessed car auctions operating in every major city in both the UK and USA so finding one isn’t hard. They also provide the opportunity for potential buyers to physically inspect the vehicle while the sellers are recouping money back for the loan on the car through a quick sale. Having said that, there are auction sites such as GAUK who are selling very successfully over the web.

My car is due to be repossessed, will I be charged to have it taken away?
When a car is repossessed the finance company will charge you any additional costs on top of the loan amount on the vehicle. This can include bailiff costs or the amount it costs them to get someone to tow the car away. Court costs and payment penalties can also be incurred. So therefore the answer to this question is yes.

After making regular payments and paying off the full loan on my car, the finance company repossessed my car without written warning after claiming that 7 months of payments had not been made on the vehicle. My bank statements prove I never missed a payment. What can I do?
The finance company has no right to repossess your vehicle in this way. Our advice would be to speak to a lawyer or visit the local Citizens Advice Bureau.

My car still has finance repayments outstanding, can a bailiff still come and repossess the car for a different debt eg. failure to pay parking fines?
Yes, even though the car still has finance, the car can be repossessed if the vehicle is in your name. When you owe money for an unrelated debt, the bailiffs will look to recover the debt they have come for by removing your assets. If one of your assets is your car then they will have the right to take this away. The unfortunate thing is that you will still have to pay back the loan on the vehicle even when it has been taken away so it is best to pay those parking fines.

The collapse of the US housing market was largely blamed on banks offering “subprime mortgages” to a large number of people. As time went on and the economy struggled more, the interest rates increased and borrowers were expected to meet repayments they could simply not afford. This resulted in a massive growth in property repossession in the United States, leaving many people homeless.

Subrime loans are those which are offered by lenders to borrowers who may not have passed the normal criteria for lending. This involves providing credit to those who may not necessarily have had access to the credit market. Examples would include people with previous debt defaults, first time lenders, people with a bad credit history etc. The loans are provided on the basis that the repayments are at a premium or higher rate. This means the borrower gets the loan but the repayment amounts are significantly higher than those with a decent credit history. The offer of obtaining a property would have seemed attractive to someone desperate for their own house but as the market suffered and interest rates increased, the number of people struggling to make repayments also did. This may have been a result of change in circumstances or loss of work, or even the fact that the cost of living is on the rise.

Following the boom in subprime mortgages, it appears banks and lenders are now targeting a whole new market – the car buyers. Credit Score company, Experian has reported a sharp rise in the number of subprime auto loans available, a change in the cautious approach which had been implemented by lenders over 2009 and 2010 following the collapse of the housing market.

People who were previously unable to buy a car because their credit was bad or because they simply couldn’t afford it are now being offered the latest models coupled with a “slightly higher loan”. For some this may be a great deal, if their financial circumstances can manage it then they may have to make slightly higher repayments but they get a car they may not have previously. For others, this can mean they are spending above their means, and the attraction of a new car pushes them to make an agreement they can’t fulfill. This can ultimately lead to their car being repossessed as they begin to miss their repayments.

Experian have stated that the percentage of subprime car loans has increased from 37.2% at the end of 2010 to almost 41% in 2011.

From a lender’s perspective the ability to repossess a car is much easier than repossessing a house. They can send the repo man out and pick up a car in a matter of hours and then resell it quickly through a repossessed car auction. In contrast, repossessing a house is much more difficult and can take a vast amount of time. This makes subprime car loans an attractive proposition for a lender as a car is a lower risk.

If you are considering a subprime car loan we would advise to check the repayment amounts and make sure they affordable for you. Don’t forget the other costs involved when owning a car – petrol, insurance, taxes etc. Also look at the interest rates and the total repayment amount, is the total viable? All of these checks can help you avoid car repossession.

The majority of Americans and Brits rely heavily on their vehicles. This involves driving to and from work, picking up children from school, visiting your local store for food shopping and many other day-to-day activities. It’s something we take for granted, in reality life without your car can prove to be a huge burden. If you are unable to make repayments on your car, it may become repossessed. This can also happen for failure to make car insurance repayments in certain US states.

Once you sign a purchase contract for your vehicle, the finance organisation or creditor has rights on the car until all payments are made or when the contract ends. This contract will vary from state to state but typically a failure to fulfil the contract could result in car repossession. The creditor is not under obligation to provide any advanced warning and they have the ability to take the vehicle at any time. This can be carried out without a court appearance. The creditor also has the right to make a sale of the vehicle to a third party in order to recoup losses. Often this may be done at a cut price in order for the finance company to recoup losses and use the income against your debt. You will then be liable to pay any outstanding money following the vehicle sale. This figure will be the purchase price minus any payments you made plus the amount recouped following the sale of the car.

Repossessing the Car
Depending on the state you are in, the law will vary on seizing your car. In a number of states, the finance company has the right to take the vehicle as soon as a payment is defaulted. This often comes as surprise to many car owners who go to drive the vehicle but then find out that the car has actually been repossessed.

Many creditors are more sympathetic and they will look to try and assist you based on your circumstances. It could be that they decide to provide you with a new payment plan, which meets your requirements. It’s important to get any new payments plans in writing from your creditor as a verbal agreement may not stand.

In the majority of US states, the finance company has the right to come on to your property to repossess your vehicle. This can be carried out without them having to provide you with any advanced notice. The creditor must follow guidelines when carrying out the repossession, they are not able to use any physical force or threaten to use force. They are also unable to remove the car from a garage which is closed without obtaining consent from you.

The creditor has the right to claim for any expenses incurred as additional charges following a repossession, however during the repossession if the guidelines are not met and the repo man carries out a “breach of the peace” then the creditor may be liable to pay penalties or provide compensation if there is any damage done to you or your property.

The creditor also has no rights to any of your personal possessions which are left in the vehicle following repossession. Often a repo man will provide an inventory of items which were in the vehicle when it was repossessed. Failure to recover any items can allow you to claim for them back, a lawyer may be able to assist with this process.

In certain states, creditors fit a vehicle with a device which will disable the engine rather than physically repossessing the car. This is often considered as being the same as a repossession.

Selling Your Repossessed Car
Once a car has been repossessed, the finance company has the right to sell the vehicle in order to recover losses from the loan amount. The car can be sold privately or often will end up in a public auction. This is a good place for people to buy cheap repossessed cars. In certain states, the creditor must provide you with information on what will happen with the vehicle once it has been repossessed. Certain laws also require a finance company provides you with details of the location and time of the repossessed cars for sale so that you are able to go to the auction and take part in the auction process. This gives vehicle owners the opportunity to bid for their vehicle following the repossession. Certain states operate with consumer laws which provide an owner with the ability to “reinstate” their loan by paying any defaulted payments plus any costs incurred from repossession of the vehicle. This means that you have the ability to buy back your vehicle and then continue making repayments as per the contract.

It’s important to remember that the creditor has an obligation to obtain a fair price for a vehicle once it is sold. Failure to sell a vehicle at a reasonable price can give you the opportunity to make a claim against the creditor, but they also have the right to sell it at market value, don’t expect them to get a high price. Often the price will be low as they look to make a quick sale.

Advice
Resources such as Repossessed Cars are an excellent source of advice and free information in order to help you avoid repossession. It’s important to remember that a creditor is much more likely to try and help the repossession taking place if you speak to them early on. Once the vehicle has been repossessed, it is always much harder to get them to cooperate. They may be willing to provide leniency or help you and prevent car repossession, however you can expect your credit score to be affected.

What happens to cars damaged after accidents? What happens to your car after it has run its life? Even burnt and certainly no longer roadworthy? They end up in an insurance yard.

Insurance yards are made up of cars or trucks which have been declared as being “scrap”. When a car is involved in an accident or is unable to be repaired, insurance companies will “write off” a vehicle thus declaring it unroadworthy. This often happens when the insurance company will decide the cost of repairing a car is more than the actual list price or current value of the car. In this case the car is scrapped or stripped down for spare parts.

Repossessed Cars sometimes end up in an insurance yard after repossession. If the car is not worth selling on the insurance company may decide to scrap the vehicle.

These salvage yards provide a great place to go and buy spare parts for your vehicle. Instead of paying over the odds prices for parts for your car from a main parts retailer, it’s more than likely you can buy that obscure part for a fraction of the price from an insurance yard. Once the junk yard receives a vehicle, it is up to them to decide what to do with it. Sometimes they are immediately scrapped but more often than not they are held in the scrap yard to be stripped down and sold. What can’t be sold will then be scrapped and recycled. The insurance yard benefits from the money it receives from the car parts plus the recycle value.

Often they will look to sell the car on as whole. The car may be accident / damaged but even though the insurance company didn’t think it was worth repairing the vehicle it most certainly does not mean it cannot be repaired. People often buy cars from insurance yards which have suffered light or minor damage in a car accident. The cost of repairing a salvage car might save them hundreds or even thousands from the list price.

If you are looking for a spare part for your car there are some great websites which allow you to advertise parts you are looking for. The salvage yards then contact you via the website and give you prices for the spare parts. You can compare prices offered from different yards to find the best deal for you. One of these is 1st choice car parts, a free site I have used myself. Another site selling parts for extremely low prices is Ebay.

Nowadays insurance yards and salvage yards are not the disorganised junk places they may have been in the past. Thanks to computers, these businesses have a full database inventory of all their parts allowing them to make quick and easy sales in an insurance yard.

A distraught son ended up losing his mother’s car to repossession after her mother. A single mother in Denver was brutally murdered by an ex boyfriend in America leaving her two children behind.

Following the murder, the car was taken by police as evidence and then automatically repossessed by the lender. Despite making the car payments after the death of his mother, Toyota failed to give back the car to the son, Aaron and ended up repossessing it. Toyota demanded the full balance of the vehicle despite receiving the repayments citing state law as giving them the power to repossess.

After Aaron posted his feelings on social networking site, Facebook, his friends decided to take matters into their own hands and began commenting on the injustice that he had received by Toyota. They posted hundreds of comments regarding the repossessed car on the Facebook page of the car manufacturer.

View the whole story here:

Salvage cars are vehicles which have usually been in accidents or suffered from flood damage. Insurance companies decide the cost of repair is more than the value of the damaged car so they opt to “write off” the vehicle. The insurer will then pay out the value of the vehicle to the owner. The value is usually calculated at the list price based on the age and mileage of the vehicle. Parkers book price provide the estimated value of the vehicles and most insurers use this as the guide price and thus the amount which is paid out.  The owner is then able to buy a new vehicle with the money they receive.

After a vehicle is declared a “write off” the car is then added to a national write off database and given a salvage title. The insurance company will then sell the vehicle for an extremely cheap price to a salvage yard. If the car can only be scrapped then this will be based on the weight of the vehicle.

It is then up to the salvage yard for what they do next with the vehicle. In some cases the salvage car is taken apart by large machinery as sold as scrap metal. The metal, glass and other parts are recycled. 

In other cases the car’s parts are sold individually by the scrap yard to prospective buyers looking for cheap second hand car parts. These parts are sold at a significantly lower price than the cost of buying the part for new.

Sometimes the salvage yard will opt to sell the car as whole with the damage and the salvage title. The car can then be repaired by a new prospective buyer. This means that cars can be bought at a massive discount, in some cases with only minor damage. Usually cars with minor damage are listed as “Cat D” vehicles. Sometimes the cars will be stolen recovered or just have light panel or interior damage.

The drawback to buying salvage cars is that a number of insurance companies will not provide comprehensive insurance even though the car is roadworthy. Nevertheless buying salvage cars can be an excellent way to save money and get a great car at a discounted price.

Buyers of salvage cars will go and visit the vehicle and assess the damage. They will then calculate the cost of repairing the vehicle with the cost of buying it. If this total is much less than the market value of the car then it becomes a very viable option.

It is very important that you know what you are doing when buying salvage vehicles. If not you can end up buying a car which has serious damage and the cost of repairing will outweigh the cost of buying a similar second hand car. Often people look at the cosmetic damage and it becomes apparent that the car frame or engine may be damaged, thus making it non roadworthy or costing a large amount for parts. The parts required to fix the vehicle are often sourced from other salvage yards.

Being able to spot a bargain and sourcing the parts for a salvage car means that a potential buyer can find a great vehicle.

Below we have a link to a list to get you started in finding your own salvage cars.

Buy Salvage Cars UK

The majority of Americans and Brits rely heavily on their vehicles. This involves driving to and from work, picking up children from school, visiting your local store for food shopping and many other day-to-day activities. It’s something we take for granted, in reality life without your car can prove to be a huge burden. If you are unable to make repayments on your car, it may become repossessed. This can also happen for failure to make car insurance repayments in certain US states.

Once you sign a purchase contract for your vehicle, the finance organisation or creditor has rights on the car until all payments are made or when the contract ends. This contract will vary from state to state but typically a failure to fulfil the contract could result in car repossession. The creditor is not under obligation to provide any advanced warning and they have the ability to take the vehicle at any time. This can be carried out without a court appearance. The creditor also has the right to make a sale of the vehicle to a third party in order to recoup losses. Often this may be done at a cut price in order for the finance company to recoup losses and use the income against your debt. You will then be liable to pay any outstanding money following the vehicle sale. This figure will be the purchase price minus any payments you made plus the amount recouped following the sale of the car.

Repossessing the Car
Depending on the state you are in, the law will vary on auto repossession. In a number of states, the finance company has the right to take the vehicle as soon as a payment is defaulted. This often comes as surprise to many car owners who go to drive the vehicle but then find out that the car has actually been repossessed.

Many creditors are more sympathetic and they will look to try and assist you based on your circumstances. It could be that they decide to provide you with a new payment plan, which meets your requirements. It’s important to get any new payments plans in writing from your creditor as a verbal agreement may not stand.

In the majority of US states, the finance company has the right to come on to your property to repossess your vehicle. This can be carried out without them having to provide you with any advanced notice. The creditor must follow guidelines when carrying out the auto repossession, they are not able to use any physical force or threaten to use force. They are also unable to remove the car from a garage which is closed without obtaining consent from you.

The creditor has the right to claim for any expenses incurred as additional charges following an auto repossession, however during the repossession if the guidelines are not met and the repo man carries out a “breach of the peace” then the creditor may be liable to pay penalties or provide compensation if there is any damage done to you or your property.

The creditor also has no rights to any of your personal possessions which are left in the vehicle following repossession. Often a repo man will provide an inventory of items which were in the vehicle when it was repossessed. Failure to recover any items can allow you to claim for them back, a lawyer may be able to assist with this process.

In certain states, creditors fit a vehicle with a device which will disable the engine rather than physically repossessing the car. This is often considered as being the same as a repossession.

Selling Your Repossessed Car
Once a car has been repossessed, the finance company has the right to sell the vehicle in order to recover losses from the loan amount. The car can be sold privately or often will end up in a public auction. This is a good place for people to buy cheap repossessed cars. In certain states, the creditor must provide you with information on what will happen with the vehicle once it has been repossessed. Certain laws also require a finance company provides you with details of the location and time of the repossessed cars for sale so that you are able to go to the auction and take part in the auction process. This gives vehicle owners the opportunity to bid for their vehicle following the repossession. Certain states operate with consumer laws which provide an owner with the ability to “reinstate” their loan by paying any defaulted payments plus any costs incurred from repossession of the vehicle. This means that you have the ability to buy back your vehicle and then continue making repayments as per the contract.

It’s important to remember that the creditor has an obligation to obtain a fair price for a vehicle once it is sold. Failure to sell a vehicle at a reasonable price can give you the opportunity to make a claim against the creditor, but they also have the right to sell it at market value, don’t expect them to get a high price. Often the price will be low as they look to make a quick sale.

Advice
Resources such as Repossessed Cars are an excellent source of advice and free information in order to help you avoid auto repossession. It’s important to remember that a creditor is much more likely to try and help the repossession taking place if you speak to them early on. Once the vehicle has been repossessed, it is always much harder to get them to cooperate. They may be willing to provide leniency or help you and prevent car repossession, however you can expect your credit score to be affected.

During these hard times brought about by the worldwide economic downturn, the virtue of the moment has to be frugality, something we seem to have lost way back during the middle ages or the great depression of the 1920s in the U.S.A. Since a car purchase has to be one of the major decisions in one’s economic life, it may be wise these days to consider purchasing repossessed cars and joining repossessed car auctions as a most practical and smart alternative.

What is a car repossession anyway? Whenever a car owner defaults or fails to make on-time loan or lease payments for whatever reason, the bank or finance company may opt to take back or repossess the vehicle, a standard clause or stipulation written into every financing contract. There will be some grace period allowed but eventually when it’s clear that the buyer cannot catch up on his installment payments, it’s repossession time – the bank or lending company’s repossession procedures take over. The rest, as they say, is history. The repossessed car is sold to recover the loan balance, including towing and storage charges,as well as professional fees for the repo company that recovered the vehicle. Where does the car end up next? More than likely in a repossessed cars auction.

Many who have taken the opportunity will swear that visiting auctions could mean savings of as much as 80% on one’s tight budget. What is more, with the convenience of online shopping nowadays, looking for repossessed cars and joining car auctions have given new meaning to the term “let your fingers do the walking.” Now, it’s more like your fingers doing the “clicking” on your computer mouse.

Where to find repossessed vehicles? There are of course any number of ways. Going online nowadays is the most convenient. If you are looking to buy repossessed cars on the internet we would highly recommend Government Auctions UK. This site has agreements with auctioneers and police services to sell repossessed cars. It is by far the best option on the web with legitimate deals being closed daily. Or, you could also simply contact your neighborhood bank, finance companies, credit unions in your area or even some local auction company and ask about auction locations, rules and schedules.

Another advantage of dealing with repossessed car auctions is that you will invariably be dealing with reputable banks and financing companies. Hence, you will be spared the proverbial “hard sell” that used-car dealers are notorious for. These finance institutions have a reputation to protect and are not likely to engage in cheap tricks just to turn in a fast buck.

It goes without saying of course that as with any major purchase, the buyer has to proceed with caution. Caveat emptor is as old as the Romans – let the buyer beware. Since you are buying a used item, a highly complex machine at that, you have to know a little bit about cars or consult with somebody knowledgeable. There will not be the usual dealer or manufacturer’s warranties that usually go with a brand-new purchase. It’s strictly an “as-is, where-is” deal or a take-it-or-leave-it affair. So do your homework on repossessed car auctions. Frugality does not mean getting a bargain for bargain’s sake. After all, you don’t want to go home being penny-wise and pound-foolish.

Visit our article resource and find further free information on repossessed cars.

Many buyers become wary when searching for repossessed cars for sale. Often they think the car will be in poor condition and not maintained. Sometimes this can be true, but on other occassions a repossessed car will be in pristine condition. When buying a repossessed car it is important to think about who the owner was before it was repossessed. Often they will have been professionals, company executives, salesmen and other individuals in highly paid employment. They may have seen the car as their pride and joy, carrying out regular dealer services, and paying top dollar for the maintenance of their vehicle.

Cars like this will be listed hundreds or even thousands of dollars below the market value. Yes really that much!

Remember the bank or finance company which repossessed the car will be looking to recover debts as quickly as possible. Selling the car at the highest price possible is not a priority for them. Instead they will aim to recover the debt as quickly as possible. This means a quick sale of the vehicle at a cheap price. Repossessed cars will always be sold may below the list value. There are many documented cases where a bank has repossessed a car with a value of £10,000 and then sold the car for £7000.

Knowing where to buy repossessed cars is the first step. The majority are sold at car auctions. The bank will repossess the vehicle and then sell the car on via a car auction. Auctioneers are cash ready and so the bank will see this as an attractive avenue in order to get money back quickly. If the auction will not pay the finance company a lump sum up front, it is much more likely that the auctioneer will be able to auction the repossessed car quickly. This huge saving will ultimately be passed on to the someone buying the repossessed car.

Sounds simple? In reality actually going ahead through this process is not so straightforward. Knowing what to do in the auction is extremely important. Inexperienced buyers often end up paying a lot more than an experienced buyer. Knowing how to succeed in auctions can help you make massive savings.

Read our guide on buying repossessed cars from auction to help you with the buying process.

If you are looking to buy repossessed cars on the internet we would highly recommend Government Auctions UK. This site has agreements with auctioneers and police services to sell repossessed cars. It is by far the best option on the web with legitimate deals being closed daily.

One of the most essential parts of the repossessed cars buying process is being able to identify a car which is in good condition. Low mileage is not the only factor which determines whether a car is in good running condition. The main auction companies often provide you with the opportunity to check the vehicles prior to auction as well as history regarding where the car came from – this may be details of whether it was repossessed or a stolen recovered vehicle. If this is something you arent too sure about, look for a mechanic or someone who knows about cars to take with you to auction. Paying a small amount for their expertise could be hugely beneficial when looking to save hundreds or even thousands!

DEVB5MTDWF8F

People in America will have no fear about getting their car repossessed thanks to the Spike TV network. Vehicle owners who find themselves the victim of car repossession will be given the opportunity to win back their repossessed car courtesy of a brand new tv gameshow due to hit screens in April 2011.

“Repo Games” will provide car owners the chance to win back the car they had previously defaulted on and winners will get back their car outright! No more repayments and the repossession is cancelled.

The below article from CNN Money provides further info on the show, I for one will be interested to see the format, knowing Spike TV the process won’t be straightforward.

NEW YORK (CNNMoney) — “Repo Games,” a reality television show from Spike TV that allows debtors a chance to win back their repossessed cars, will hit the airwaves later this month.

“This is the only show that combines the game-show format with actual repos,” said producer Sally Ann Salsano, “On the show, we give them a chance to win their car back, clean and simple. No car payments ever again.”

She explained that debtors on the show are “not thrilled” when they discover their repossessed cars hooked up to a tow truck, as a video crew captures their reaction. But they brighten a bit, she says, when they realize they’ve got a fighting chance to get their car back, with all debts paid off, if they successfully answer three out of five trivia questions.

“This could be a terrible situation, but this could also be your lucky day,” she said.

The trivia questions, she said, range from food and drink to science, pop culture, movies, technology and other topics.
Salsano of 495 Productions will debut this show April 26, right on the heels of “Jersey Shore,” a reality show that recently wrapped up its third season on MTV, which owns Spike TV.

As one of the producers of “Jersey Shore,” Salsano lived in the show’s beach house where the crew filmed her ne’er-do-well roommates — the stars of the show — as they lounged around all day, got drunk in clubs, argued about trivialities and attempted to score with like-minded members of the opposite sex.

The stars of “Repo Games” are, as might be expected, actual repo men. Josh Lewis and Tom DeTone are real-life professionals who repossess cars for a living. They’re not actors, which sets them apart from Emilio Estevez and Harry Dean Stanton, who starred in the 1980s cult flick “Repo Man.”

Spike TV filmed Lewis and DeTone as they repossessed 80 cars in Los Angeles and Dallas.

“Tom is the big muscle guy, but he’s a total softie on the inside,” said Salsano. “Josh razzes with the people a little bit. They both have a heart of gold and they’ve both been repoing cars for years.”

In their off-camera repos, the debtors are out of luck. But in their on-camera repos, Lewis and DeTone are the ones who pose trivia questions to the winners and losers.

“They feel like they’re giving people a chance,” said Salsano.

View the full CNN Money article.

DEVB5MTDWF8F